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Discrete Emission Credit Program

The Discrete Emission Credit program provides a method to generate credit by creating temporary emission reductions throughout the State of Texas.

The Discrete Emission Credit program allows participants to generate credits by creating temporary (i.e., discrete) emission reductions from point, area, and mobile sources. Reductions generated from point and area sources are known as Discrete Emission Reduction Credits (DERC) while reductions from mobile sources are known as Mobile DERCs (MDERC). This program encourages emission reductions and provides participants flexibility in complying with various federal and state air regulations. Participation is completely voluntary.

Program rules are listed under 30 TAC Chapter 101, Subchapter H, Division 4 .

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Inter-Pollutant Modeling Example


  • State of Texas Environmental Electronic Reporting System (STEERS) must be used to submit credit generation applications and trades online.
  • Notice of Intent to Use Discrete Emission Credits (Form DEC-2) in PDF or Word
    • Submit by August 1 prior to the year of use in the Dallas-Fort Worth nonattainment area (DFW), 45 or 90 days prior to the first day use (dependent upon credit type) in areas other than DFW.
      For compliance with the Mass Emission Cap and Trade (MECT) Program, submit by October 1 in the control period of use.
  • Notice of Use of Discrete Emission Credits (Form DEC-3) in PDF or Word
    • Submit within 90 days after each use period. For compliance with the MECT Program, submit by March 31 after the control period of use.

Audits and Summary Reports

  • Generation Report - Includes the generator of the credits, amount generated, area of generation, pollutant type, and associated project number.
  • Trade Report - List of recent discrete emission credit transfers.
  • Use Report - Includes the user of the credits, amount used, area of use, pollutant type, and associated project number.
  • 2013 DERC Program Audit - Evaluates the generation, use, availability, and trading of credits and the impact of the DEC program on the state's attainment demonstration.